05-03-2010, 11:29 AM
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Member
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Join Date: Dec 2008
Location: India
Posts: 80,566
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US Tax
- Taxability Model
- With the taxability model, user will be able to configure which tax authorities and tax types that a particular wage type should be taxed.
With the taxability model, user will be able to have wage type M123 only taxed for Federal withholding but not other tax authority or tax types.
There are 3 steps to define the tax model for a particular tax authority.
a. Define Tax Type Combinations
User will first define the tax type combination, which contains the tax types that apply for a wage type.
If a particular wage type will be taxed for tax type 01, 03, and 04, the following tax type combination should be defined:
Tax Type Combination
| Tax Type
| Description
| 1
| 01
| Withholding
| 1
| 03
| Employee Social
| 1
| 04
| Employer Social Security Tax
| b. Tax Model
The next step will be to define the tax model based on Res/Work/UI, tax modifier, and the taxability classification defined in processing class 71.
To define a tax model for Resident, tax modifier U1, and taxability classification E which only tax for tax type 01, 03, and 04 (Tax combination 1 defined in the last step), it should look like the following:
Tax model
| Res/wrk/Ul
| Tax modif
| Tax Class
| Tax Type Comb
| 1
| R
| U1
| E
| 1
| c. Tax authority model
The last step is to assign the tax authority to the tax model defined in the last step.
To assign tax authority "FED" to tax model "1":
Tax Authority
| Tax model
| From
| To
| FED
| 1
| 01/01/1900
| 12/31/9999
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